We commenced our journey in the early 90's right after opening of the Indian markets.The implementation of Liberalisation Globalisation and Privatisation (LPG) reformsattracted many opportunities our way. Through our determination we seized everyopportunity and it helped us steer in an ever-changing landscape. This has made usresilient and responsive to the ever-changing market dynamics. I am glad to share thattoday we have become a reliable and one of the leading manufacturers of Cotton YarnsBlend Yarns Knitted Fabrics and Woven Fabrics in India. This leadership position is welldemonstrated in our Revenue from Operation performance which clocked in a 15.73% Y-O-Ygrowth amidst the challenging macroeconomic environment and Covid-19 outbreak in the lastfew weeks of 2019-20.
India's GDP growth declined from 6.1% in 2018-19 to 4.2% in 2019-20. Risingunemployment rate and income stress in rural areas caused the consumer consumption levelto dry up. Trade tensions and geopolitical factors in the external world were also a causeof worry for the overall business sentiments. The Government of India took measures in theform of reducing corporate and personal income tax rates increasing Minimum SupportPrices (MSP) for farmers and imposing import duties to encourage both supply and demandsituation in India. However before these actions could bring in any positive economicnews the country was hit by the Covid-19-induced lockdowns. It sent shock waves acrossmany industries and brought all the economic activities across the world to a standstill.The cash flow support from the Government and RBI through monetary and fiscal policieshelped control the pandemic impact on public from getting more severe and intense. Goingahead it will all depend on the containment of this pandemic and how the countries andcompanies adapt to the new normal.
Over the last decade Asia has emerged amongst the largest production and consumptionpowerhouse in textile industry. India dominates the raw material space. Cotton accountsfor 25% of the global output and it augurs well for the upstream textile players like us.For the last six years Indian textile exports level has remained at the US$ 40 Billionlevel. This signifies the pivotal role it plays in contributing to India's forex. We atNitin Spinners also derive majority of the revenue from exports and keep ourselves hedgedagainst any downturn in the domestic economy. This further aligns us with the PrimeMinister's vision of an Atmanirbhar Bharat' which aims to reduce the country'sdependency on imports and build manufacturing capacities in India.
^ Total income remained at ' 1438 Crores against ' 1242 Crores in theprevious year ^ Export accounted for 54.46% of the total revenue whereas domestic marketcontributed the rest ^ EBIDTA was reported at ' 172 Crores against ' 181Crores in the previous year
^ PAT was reported at ' 23.81 Crores against ' 64.11 Crores in theprevious year
Strategic Expansion: Adding to our Responsiveness
Overseas end-user textile and apparel players prefer to source their low-cost cottonfabrics requirements from India. Our proactive decision of forward integrating into value-added cotton fabrics is now paying off. We commenced with the commercial production ofthe Finished Fabric from 1st January 2020 onwards. While we were already present in theKnitted Fabrics we also commenced with the production of Woven Finished Fabrics. We havethus completed all planned Capex during the year.
We are blessed to work with a talented pool of people across all the departments. Theircommitment and dedication through the thick and thin of the organisational journey isappreciation worthy. We have consistently worked on improving their skills through regulartrainings and workshops. Besides we have also worked on the leadership building andoverall motivational levels of all our employees.
To the Social and Environmental Concern
As we grow we continuously look to embed eco-friendly practices into our operation andreduce our carbon footprints. Our commitment towards environmental stewardship has yieldedbeneficial results not only for the environment but for the society as well. As a part ofcommunity development we create employment opportunities and also conduct severalawareness drives in the areas of cleanliness social issues and education among others.
We have set the benchmark through our quality products workplace environmentpractices policies and strong governance. We remain committed to improving life for ourconsumers employees and communities. Going ahead we shall consolidate our existingproducts and capacities.
We will also continue to explore newer markets across the geographies. While we havegrown from strength to strength we are further looking forward to build on this successand continue creating sustainable value for our stakeholders.
In the closing note I would like to acknowledge the role of our Board Members and theManagement team for consistently delivering mentoring the team and demonstratingresilience. I also thank all our employees bankers communities business partnerssuppliers and above all our loyal shareholders for their unwavering trust. I amconfident that by working closely together we will continue to deliver a solidperformance and reliable growth for Nitin Spinners going ahead.
R. L. Nolkha